Exam 21: Consumer Protection Law

Sadie is looking to buy a new pair of running shoes.She tells the salesperson that she is a marathoner and need shoes for distance.The salesperson suggests that Sadie buy a pair of Mercury running shoes.Mercury shoes are actually designed for walking rather than running.On mile 21 of her first training run,the shoes start to wear through in the heel.What type of warranty has been breached?

Which part of the Truth in Lending Act requires that certain disclosures be made before a credit transaction is consummated?

Which of the following must be approved by the FDA before it can be sold to the general public?

The FDA jurisdiction includes administering the Flammable Fabrics Act.

The FDA has authority to bring criminal prosecutions.

If Annie borrows money to pay for her kitchen upgrades from her aunt Bethany,Bethany does not need to provide required disclosures under the Truth in Lending Act.

The Equal Credit Opportunity Act is limited to regulating applications for credit,but not to the charging of higher interest rates based on the race of the consumer.

Who is typically empowered by the states to protect consumers from deceptive trade practices?

Regarding finance charges and APR,Regulation Z requires that their disclosure:

What is the name of the legislation enacted in response to injuries and death from products being sold to consumers?

In Discover Bank v.Owens,Owens received a Discover credit card with a limit of $1,900 and charged $1,460.The credit card agreement allowed Discover to add fees and increase her interest rate when Owens paid her bill late or did not pay in full.Owens became disabled and experienced severe financial difficulty.She stopped using the card and made regular payments but continued to accrue fees.She eventually paid $3,492 towards her original debt but still owed Discover $5,564 when Discover brought a collection suit against her.The court held that in this situation:

Individual consumers do not have the right to see their own credit report unless they are applying for a loan.

If a credit card is issued to a consumer under the age of 21 the credit card company is required to:

Historically,the only legal protection a consumer had against a seller that engaged in deceit during a sale was a common law suit for fraud.

If a buyer has not made a specific representation about a product,the buyer may still be protected by an express warranty.

A manufacturer of cars advertises that the windshield is shatter proof and would not break even when hit with a strong impact.While an owner was driving home one day,a small rock hit the windshield and the windshield broke,cutting the driver.What type of warranty was breached?

What is puffery? Provide an example.

Victims of odometer tampering may receive what kind of damages?

Magnuson-Moss requires that a seller offer a warranty to buyer.

The Fair Debt Collection Practices Act applies to ________ collecting a debt for the creditor.